We have audited the attached Balance Sheet of KWALITY CREDIT & LEASING
 LIMITED as at 31st March 2012, and also the annexed Profit & Loss
 Account of the company for the year ended on that date annexed thereto.
 These financial statements are the responsibility of the Company''s
 management. Our responsibility is to express an opinion on this
 financial statement based on our audit.
 
 We conducted our audit in accordance with the auditing standards
 generally accepted in India. Those standards require that we plan and
 perform the audit to obtain reasonable assurance about whether the
 financial statements are free of material misstatements. An audit
 includes examining, on a test basis, evidence supporting the amount and
 disclosure in the financial statements. An audit also includes
 assessing the Accounting principle used and significant estimates made
 by management, as well as evaluating the overall financial statement
 presentation. We believe that our audit provides a reasonable basis of
 for our opinion.
 
 Further to our comments referred to above, we report that:
 
 a) We have obtained all the information and explanation, which to the
 best of our knowledge and belief were necessary for the purpose of our
 audit.
 
 b) In our opinion, the company as required by law, has kept proper
 books of accounts so far as appears fromourexaminationofsuch books.
 
 c) The Balance Sheet, Profit & Loss Account & Cash Flow Statement dealt
 with by this report are in agreement with the books of accounts.
 
 d) In our opinion, the Balance Sheet, Profit & Loss Account & Cash Flow
 Statement dealt with by this report comply with the accounting
 standards referred to in sub - section (3C) of section 211 of the
 companies Act, 1956.
 
 e) On the basis of the written representations received from the
 Directors as on March 31 st 2012, and taken on record by the Board of
 Directors, we report that none of the Directors is disqualified as on
 March 31 st 2012, from being appointed as a Director in term of Clause
 (g) of sub- section (1) of section 274 of the Company''s Act, 1956
 
 f) In our opinion and to the best of our information and according to
 the explanation given to us, the said accounts read with notes thereon,
 give the information required by the companies Act, 1956 in the manner
 so required and give a true and fair view in conformity with the
 accounting principles generally accepted in India:
 
 1.  In the case of the Balance Sheet, of the state of affairs of the
 company as at 31st March 2012,
 
 2.  In the case 6f the Profit & Loss Account, of the Profit, of the
 company for the year ended on that date.  AND
 
 3.  In the case of the Cash Flow Statement, of the cash flows of the
 Company for the year ended on that date.
 
 As required by the Company''s (Auditors'' Report) Order, 2003 issued by
 the central government of India in terms of sub section (4A) of section
 227 of the companies act, 1956, and on the basis such checks of the
 books and records of the company as we considered appropriate and the
 information and explanation given to us, during the course of the
 audit, we state in our opinion:
 
 a) The Company has maintained proper records to show full particulars
 including the quantitative details and situation of Fixed Assets. The
 management during the year has physically verified the Fixed Assets of
 the Company wherever practicable and the management has noticed no
 serious discrepancies.
 
 b) No Fixed Assets has been disposed during the year.
 
 c) In our opinion procedure of the physical verification of stocks
 followed by the management are reasonable and adequate in relation to
 the size of the Company and the nature of its business.
 
 d) The discrepancies noticed on verification between the physical stock
 and the books records were not material.
 
 e) The company has not taken unsecured loan from companies, firms, or
 other parties listed in the register maintained under section 301 of
 the companies Act, 1956
 
 f) The company has not granted unsecured loan to companies, firms, or
 other parties listed in the register maintained under section 301 of
 the companies Act, 1956. In our opinion and according to the
 explanation given to us, the rate of interest and other terms and
 conditions on which the company has granted loans to companies, firms,
 or other parties listed in the register maintained under section 301 of
 the companies Act, 1956 are prima facie not prejudicial to the interest
 of the company. The said parties are repaying the principle together
 with interest as per stipulation.
 
 g) In our opinion and according to the explanation given to us, during
 the course of the audit, there is adequate internal control procedure
 commensurate with the size of the Company and the nature of its
 business with regard of trading activities. We have not noted any
 continuing failure to correct major weakness in the internal controls
 during the course of audit.
 
 h) In our opinion and according to the information and explanation
 given to us, No transaction made in pursuance of contracts that need to
 be entered into a register maintained under section 301 of the
 companies Act, 1956 exceeding the value of Rs. 500000/- i) According to
 the information and explanation given to us, the company has not
 accepted any deposit from the public and consequently, the directives
 issued by the Reserve Bank of India, the Provision of section 58A&
 58AAofthe Company''s Act, 1956 and ruled framed there under in respect
 of deposits is not applicable. To the best of our knowledge and
 according to information and explanation given to us, no order on the
 company under the aforesaid section has been passed by the company law
 Board.
 
 j) In our opinion, the company has an internal audit system
 commensurate with its size and nature of its business.
 
 k) According to the information and explanation given to us, the
 central government has not prescribed the maintenance of cost records
 under clause (d) of sub- section(1) of section 209 of the companies
 Act, 1956.
 
 I) According to the information and explanation given to us, and on the
 basis our examination of the books of accounts and records of the
 company, the company is regular in depositing with the appropriate
 authorities undisputed statutory dues including Income tax and any
 other material statutory dues applicable to it.
 
 m) According to the information and explanation given to us, no
 undisputed amount payable in respect of Income tax & cess were
 outstanding as at 31st March 2012 for a period of more than six month
 from the day they become payable.
 
 n) According to the information and explanation given to us, there are
 no dues in respect of Income tax, Wealth Tax , Sales Tax , Excise duty
 custom duty & cess that were not been deposited with the appropriate
 authorities on account of any dispute.
 
 o) As at 31st March, 2012 the accumulated losses of the company are
 not more than fifty percent of its net worth and has not incurred cash
 losses in the financial year and in the financial year immediately
 preceding such financial year.
 
 p) The company has neither taken any loans from bank or Financial
 Institution, nor issued any debentures Accordingly, clause 4(xi) of the
 order is not applicable.
 
 q) The company has not granted loans and advances on the basis of
 security by way of pledge of shares, debentures. Accordingly, clause4
 (xii) of the order is not applicable
 
 r) The company is not a chit fund, Nidhi, Mutual benefit fund or a
 society. Accordingly, clause 4(xiii) of the order is not applicable.
 
 s) The Company has maintained proper records of transactions and
 contracts in respect of trading in securities, debentures and others
 investment and timely entries have been made therein. All shares,
 debentures and other investment have been held by the Company in its
 own name.
 
 t) The company has not obtained any term loan. Accordingly, clause4
 (xvi) of the order is not applicable.
 
 u) According to the information and explanation given to us, the
 company has not raised any fund on short-term basis. All assets have
 been funded by the share holders'' fund.
 
 v) The company has not made any preferential allotment of shares to
 companies and parties listed in the register maintained under section
 301 of the companies Act, 1956 Accordingly, clause4 (xviii) of the
 order is not applicable.
 
 w) The company has not issued any Debenture during the year
 Accordingly; clause (xix) of the order is not applicable
 
 x) The company has not raised any money by public issue during the year
 Accordingly, clause (xx) of the order is not applicable.
 
 y) According to the information and explanation given to us, no fraud
 on or by the company has been noticed or reported during the year.
 
 Date : The 3rd day of 
 September 2012         As per our report of 
                        even date              For & on behalf of 
                                               Board of Directors
 
 Place: 454, Dumdum 
 Park,                  For Pachisia & 
                        Associates                    B. D. Soni
 
 Kolkata-55             Chartered Accountants           Director
 
                        FRN - 327542E                  Amu Thapa
 
                        S.P. Pachisia                   Director
 
                        Proprietor
 
                        M. No. : 055040